Bulgarian police arrested two men in Sofia for possessing more than 400 kg of untaxed hookah tobacco worth more than BGN 100,000 ($60,000), officials said. The suspects, identified as two brothers in their 50s, were detained following a police operation after officers found untaxed tobacco in their vehicle and later uncovered the large cache in a nearby building. Authorities said the tobacco was intended for nationwide commercial distribution and had been sold through direct deliveries and courier services for nearly a year. A third individual suspected of involvement was also detained, and pre-trial proceedings are underway.
Category: Illicit Trade
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Van Stopped with Nearly $500K in Illicits in Australia
A man has been charged after cigarettes and tobacco worth A$752,000 ($496,000) were seized during a road stop in Australia’s south yesterday (December 18). Officers stopped a van on the southbound lane of the Hume Highway, Gundagai, for the purpose of random testing. Police searched the van and seized 400 kg of loose-leaf tobacco and 235,000 illicit cigarettes.
The man was issued with a field court attendance notice for goods in custody, to appear in Gundagai Local Court in February.
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Italians Bust Illicit Factory Making 4M Cigarettes Per Day
Italian and European authorities dismantled a large illegal tobacco factory near Rome capable of producing up to 4 million counterfeit cigarettes a day, according to statements from Italy’s Guardia di Finanza and the European Public Prosecutor’s Office (EPPO). The main site, located in Pomezia, about 30 km south of Rome, manufactured cigarettes bearing well-known international brands.
During coordinated raids, officers seized 27 tons of finished cigarettes, 19 tons of raw tobacco, large quantities of packaging materials, and four lorries (trailer trucks). A second facility in Ferentino, used for the storage of materials and finished products, was also uncovered. Seven men from Ukraine and Bulgaria were referred to judicial authorities on charges related to tobacco smuggling and trademark counterfeiting.
Authorities estimate the operation generated products worth about €700,000 per day, or €240 million annually, resulting in roughly €160 million in unpaid taxes and excise duties. Investigators said the suspects used jamming devices and surveillance countermeasures to evade detection, with the sites ultimately identified through drones, video surveillance, and extended monitoring.
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China Calls for Full-Crackdown on Illicit Tobacco Products
China’s State Council has issued new policy guidance aimed at cracking down on tobacco-related illegal activities across the entire supply chain, seeking to address persistent problems such as counterfeiting, smuggling, and intellectual property infringement. The document, titled Opinions on Combating Tobacco-related Illegal Activities in the Whole Chain, outlines targeted measures to clean up the tobacco market and protect national interests and consumer rights.
The Opinions call for intensified action against overseas counterfeiting and the smuggling of tobacco into China, including stronger law enforcement cooperation with other countries, tighter sea and land border controls, and stricter oversight of ports, transit trade, and cross-border logistics. Authorities are also instructed to strengthen risk control over international transport and parcels, and to curb smuggling through cross-border e-commerce and transportation personnel.
Domestically, the policy mandates a high-pressure crackdown on illegal production, storage, transport, and sale of tobacco products, including counterfeit cigarettes and unapproved nicotine products. It also tightens supervision of e-cigarettes and bans the unauthorized manufacture and sale of tobacco-like products and simple cigarette-making equipment. The State Council stressed the need for stronger inter-agency coordination, professionalized enforcement teams, and strict, standardized law enforcement, urging local governments and departments to fully assume responsibility for implementing the measures.
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Illicit Tobacco Cost S. Africa $2.4B Over Last Five Years
South Africa’s Revenue Service (Sars) estimates it lost R40 billion ($2.4 billion) in excise revenue between 2020 and 2025 due to the illicit tobacco trade, a problem that worsened during the Covid-19 ban on cigarette and tobacco sales, Finance Minister Enoch Godongwana said. Responding to a parliamentary question, Godongwana said the National Treasury has adopted a differentiated approach to excise duty increases, taking into account market dynamics, illicit trade, and fiscal needs.
Tobacco producers have suggested that high excise duties have pushed consumers toward cheaper illegal cigarettes, deepening black-market activity; however, Godongwana counters that excise duties on cigarettes have not been raised above inflation since the 2023 budget, helping cigarette and tobacco excise revenue recover 8.7% to R9bn ($540 million) in 2024/25, though still below pre-pandemic levels.
To curb illicit trade, Sars has stepped up enforcement, recording 576 seizures worth R265 million ($15.9 million) in 2024/25 and 233 seizures worth R135.5 million ($8.1 million) so far in 2025. Measures include audits, license suspensions, and CCTV monitoring at manufacturing sites.
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Federal Judge Allows Deceptive Claim in Zyn Case
A federal judge in Florida has allowed deceptive practices claims against Philip Morris International (PMI) and its subsidiaries to move forward, according to Law360. On December 12, U.S. District Judge William P. Dimitrouleas of the Southern District of Florida denied the companies’ motion to dismiss claims brought by plaintiff Kovadis Palmer under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).
Palmer alleges that PMI and Swedish Match North America LLC misleadingly marketed Zyn nicotine pouches as “tobacco-free,” suggesting a lower addiction risk even though the nicotine is derived from tobacco. He claims he developed nicotine dependence as a result. While the court previously dismissed Palmer’s common-law fraud claims for failing to meet heightened pleading standards, it found that the amended FDUTPA claims advance a distinct legal theory.
The judge ruled that FDUTPA claims do not require proof of intent to deceive and are not subject to the stricter fraud pleading rules. As a result, the court held that the claims are not merely a repackaging of dismissed fraud allegations and may proceed.
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Pakistan Seizes $68M in Illicit Raw Tobacco
Pakistan’s Regional Tax Office (RTO) Peshawar sealed several warehouses in District Mardan, Khyber Pakhtunkhwa, and seized non-duty-paid raw tobacco as part of a tax evasion crackdown. Authorities estimate the operation exposed tax evasion worth Rs19 billion ($68.4 million), marking a major enforcement action by the Federal Board of Revenue (FBR).
According to an official statement, the RTO confiscated around 2.75 million kg of raw, non-duty paid tobacco from the Khyber Tobacco Company. The evaded Federal Excise Duty on the recovered stock is estimated at Rs1.1 billion ($4 million), and further action is expected against the company.
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Philippines Simultaneously Destroys $22.8M in Illicit Vapes
Today (December 15), the Philippines Bureau of Internal Revenue (BIR) simultaneously destroyed 448,494 illicit vape products nationwide, involving an estimated PHP1.34 billion ($22.8 million) in unpaid taxes and penalties. The destruction formed part of a three-day anti-illicit trade campaign and was publicly live-streamed to demonstrate transparency and enforcement.
BIR Commissioner Charlito Martin Mendoza said the action sends a clear message that the government will not tolerate the sale of vape products without proper excise tax stamps. He stressed that excise taxes on vape and other “sin products” are meant both to discourage consumption and to fund government healthcare programs.
Mendoza said enforcement will intensify to remove unstamped products from the market and prevent risks to consumers.
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Czech Officials Increasing Illicit Tobacco Seizures
Customs officers in the Czech Republic seized thousands of unlabeled tobacco products during inspections in the Cheb region of western Czechia, uncovering large-scale violations of excise tax regulations. The haul included both conventional cigarettes and electronic cigarettes bearing invalid or no excise markings, suggesting deliberate attempts to evade tax obligations.
At a shopping center in the town of Aš, officers discovered nearly 70,000 unlabeled cigarettes and almost one liter of liquid intended for disposable e-cigarettes. The items were found in vehicles parked behind retail premises. Authorities estimated the total value of the seized goods at more than CZK 547,000 ($26,000) with a potential excise tax loss of nearly CZK 325,000 ($16,000).
In a separate operation at a business in Pomezí nad Ohří, customs officers confiscated 1,480 disposable e-cigarettes valued at over CZK 1.4 million ($67,000).
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Russian Police Seize $1.6M in Illicit Vapes
Russian police in the Tambov region seized more than 150,000 e-cigarettes, along with cartridges and liquids worth about 126.5 million rubles ($1.6 million). Authorities said the products were shipped from Moscow disguised as small household appliances and supported by fake documents. Testing found nicotine levels significantly higher than stated on the packaging. A man has been detained, and a criminal case has been opened for the storage and sale of unmarked e-cigarettes.